6-K

Commission File Number 001-31914

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

October 25, 2018

China Life Insurance Company Limited

(Translation of registrant’s name into English)

16 Financial Street

Xicheng District

Beijing 100033, China

Tel: (86-10) 6363-3333

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                 

Commission File Number 001-31914

China Life Insurance Company Limited issued its 2018 Third Quarter Report on October 25, 2018, a copy of which is attached as Exhibit 99.1 hereto.

Certain statements contained in this report may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2017 filed with the U.S. Securities and Exchange Commission, or SEC, on April 25, 2018 and in the Company’s other filings with the SEC. You should not place undue reliance on these forward-looking statements. All information provided in this report is as of the date of this report, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law. Unless otherwise indicated, the Chinese insurance market information set forth in this report is based on public information released by the China Banking and Insurance Regulatory Commission.

EXHIBIT LIST

Exhibit	Description
99.1	2018 Third Quarter Report, dated October 25, 2018

Commission File Number 001-31914

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		China Life Insurance Company Limited
		(Registrant)
	By:	/s/ Lin Dairen
		(Signature)
October 25, 2018	Name:	Lin Dairen
	Title:	President and Executive Director

EX-99.1

EXHIBIT 99.1

CHINA LIFE INSURANCE COMPANY LIMITED

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 2628)

2018 THIRD QUARTER REPORT

This announcement is made by China Life Insurance Company Limited (the “Company”) pursuant to the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The financial data of the Company for the third quarter of 2018 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. Net profit attributable to equity holders of the Company and equity attributable to equity holders of the Company in the consolidated financial statements have no difference from the relevant data under the International Financial Reporting Standards.

1. Important Notice

1.1 The Company’s Board of Directors, the Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in this quarterly report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and jointly and severally accept full legal responsibility.

1.2 On 25 October 2018, the 2018 Third Quarter Report of the Company was considered and approved at the sixth meeting of the sixth session of the Board of the Company. Of the twelve Directors of the Company, nine attended the Board Meeting. Executive Directors Lin Dairen, Xu Hengping and Xu Haifeng, Non-executive Directors Liu Huimin and Su Hengxuan, and Independent Non-executive Directors Chang Tso Tung Stephen, Robinson Drake Pike, Tang Xin and Leung Oi-Sie Elsie attended the meeting. Chairman and Executive Director Yang Mingsheng could not attend the meeting due to other business, and gave written authorization to Executive Director Lin Dairen to act as his proxy to attend, vote and chair the meeting. Non-executive Directors Yuan Changqing and Yin Zhaojun could not attend the meeting due to other business, and gave written authorization to Non-executive Directors Su Hengxuan and Liu Huimin, respectively, to act as proxies to attend and vote at the meeting.

1

1.3 The Company’s 2018 third quarter financial report is unaudited.

1.4 Mr. Yang Mingsheng, Chairman of the Company, Mr. Zhao Lijun, Vice President in charge of accounting affairs, Mr. Li Mingguang, Chief Actuary and Ms. Hu Jin, Head of the Accounting Department, confirm that the financial reports in this 2018 third quarter report are true, accurate and complete.

2. The Company’s Basic Information

2.1 Major financial data

(Currency: RMB)

	As at 30 September 2018		As at 31 December 2017		Increase/(decrease) compared to 31 December 2017
Total assets (million)		3,116,499		2,897,591		7.6	%
Total equity holders’ equity (million)		330,385		320,933		2.9	%
Ordinary share holders’ equity per share (RMB per share)		11.41		11.08		3.0	%
	For the nine months ended 30 September 2018		For the nine months ended 30 September 2017		Increase/(decrease) compared to the same period of 2017
Net cash flows from operating activities (million)		76,433		179,789		-57.5	%
Net cash flows from operating activities per share (RMB per share)		2.70		6.36		-57.5	%
	For the nine months ended 30 September 2018		For the nine months ended 30 September 2017		Increase/(decrease) compared to the same period of 2017
Operating income (million)		540,967		547,665		-1.2	%
Net profit attributable to equity holders of the Company (million)		19,869		26,825		-25.9	%
Net profit attributable to equity holders of the Company after deducting non-recurring items (million)		20,049		26,902		-25.5	%
Earnings per share (basic and diluted) (RMB per share)		0.69		0.94		-26.2	%
Basic earnings per share after deducting non-recurring items (RMB per share)		0.70		0.94		-25.7	%
Weighted average ROE (%)		6.13		8.68		A decrease of 2.55 percentage points
Weighted average ROE after deducting non-recurring items (%)		6.18		8.70		A decrease of 2.52 percentage points

Note: In calculating the percentage changes of “Ordinary share holders’ equity per share”, “Net cash flows from operating activities per share”, “Earnings per share (basic and diluted)” and “Basic earnings per share after deducting non-recurring items”, the tail differences of the basic figures have been taken into account.

2

In the first three quarters of 2018, facing the complicated and severe external environment, the Company adhered to its strategic consistency and tactical flexibility, and steadily pushed forward various tasks according to the requirements for high-quality development. Firstly, the Company firmly remained a market-leading position, and renewal premiums became stronger driving force for the business development. In the first three quarters of 2018, the Company achieved revenues from insurance business¹ of RMB468,534 million, an increase of 4.1% year-on-year, maintaining its leading position in the market. In particular, the Company recorded renewal premiums of RMB316,285 million, an increase of 28.7% year-on-year, which demonstrated the strong driving force of the renewal business. Secondly, the Company promoted the product diversification strategy in great depth, and its business structure was constantly optimized. The percentage of premiums from the top five insurance categories in long-term first-year premiums decreased by 17.4 percentage points year-on-year, and the long-term protection-oriented business developed at a faster speed. As at 30 September 2018, the surrender rate was 4.45%. Thirdly, the sales force remained stable in its size with enhanced quality, and the sales transformation began to take effect. As at 30 September 2018, the scale of the Company’s sales force reached 1.83 million, which was basically flat as compared to the end of June 2018. In particular, the number of exclusive individual agents in the exclusive individual agent channel reached 1.455 million, an increase of 14,000 agents from the end of June 2018. Meanwhile, the average agents on a monthly basis for the sale of protection-oriented products increased by 49.7% year-on-year, with the quality of the sales force improved. Fourthly, the allocation in fixed income assets was satisfactory but equity investment income was under pressure. As at 30 September 2018, the Company’s investment assets were RMB2,787,721 million. In the third quarter of 2018, the Company continued to seize the opportunity of the interest rate hike and increased its investment in fixed income assets with long duration. The Company also consistently optimized the structure of its equity assets allocation. However, the equity assets income of the Company in the open market declined significantly due to the impact of the prolonged downturn in the domestic stock market. In the first three quarters of 2018, gross investment yield² was 3.32%, a decrease of 1.80 percentage points year-on-year; net investment yield³ was 4.60%, a decrease of 0.39 percentage point year-on-year. As affected by the continuous decline of the capital market, net profit attributable to equity holders of the Company was RMB19,869 million, a decrease of 25.9% year-on-year. Finally, the Company’s comprehensive strengths were enhanced. As at 30 September 2018, the Company’s total assets reached RMB3,116,499 million, an increase of 7.6% as compared to the end of 2017, ranking first in the industry. Both of the Company’s core solvency ratio and comprehensive solvency ratio reached 262.17%.

¹  Revenues from insurance business is consistent with Premium Income in the attached income statement.

²  Gross investment yield = {[(Gross investment income – Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the beginning of the period – Financial assets sold under agreements to repurchase at the beginning the period – Derivative financial liabilities at the beginning of the period + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period – Derivative financial liabilities at the end of the period)/2)]/273}×365

³  Net investment yield = {[(Net investment income – Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the beginning of the period – Financial assets sold under agreements to repurchase at the beginning of the period + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2]/273}×365

3

For the next stage, the Company will focus on its annual targets and take proactive actions to fulfill the overall tasks for the year 2018, by sticking to the general keynote of “making steady progress” and the requirements for high-quality development, and adhering to the operating guideline of “prioritizing value, strengthening sales force, optimizing business structure, achieving stable growth and safeguarding against risks”. Moreover, the Company will develop scientific plans for the year 2019, and forge ahead with courage and persistent efforts for the purpose of achieving satisfactory results.

Non-recurring Items and Amounts

RMB million            

Non-recurring items	For the Reporting Period (from July to September)			For the nine months ended 30 September 2018
Gains/(losses) on disposal of non-current assets		11			14
Government subsidies recognized in current gains/(losses)		16			33
Net non-recurring items other than those mentioned above		(112	)		(284	)
Effect of income tax		21			59
Attributable to non-controlling interests		1			(2	)
Total		(63	)		(180	)

Note: As an insurance company, investment (utilization of insurance funds) is one of the major businesses of the Company. Therefore, the non-recurring items do not include fair value gains/(losses) from financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, as well as investment income from the disposal of financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss and available-for-sale financial assets.

2.2 Total number of shareholders and the particulars of top ten shareholders as at the end of the reporting period

The total number of shareholders as at the end of the Reporting Period	Number of holders of A Shares: 135,112
	Number of holders of H Shares: 28,015

	Particulars of the top ten shareholders								Unit: Share
Name of shareholders	Nature of shareholder	Percentage of shareholding			Total number of shares		Number of shares subject to selling restrictions		Number of shares pledged or frozen
China Life Insurance (Group) Company	State-owned legal person		68.37	%		19,323,530,000		—		—
HKSCC Nominees Limited	Overseas legal person		25.90	%		7,321,787,185		—		—
China Securities Finance Corporation Limited	State-owned legal person		2.56	%		723,712,461		—		—
Central Huijin Asset Management Limited	State-owned legal person		0.42	%		119,719,900		—		—

4

Hong Kong Securities Clearing Company Limited	Overseas legal person	0.10	%	29,277,307	—	—
China International Television Corporation	State-owned legal person	0.07	%	18,452,300	—	—
China Universal Asset Management Co., Ltd – Industrial and Commercial Bank of China Limited – China Universal – Tianfu Bull No. 53 Asset Management Plan	Other	0.05	%	15,015,845	—	—
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Securities Investment Fund	Other	0.05	%	14,601,652	—	—
China National Nuclear Corporation	State-owned legal person	0.04	%	12,400,000	—	—
National Social Security Fund Portfolio 407	State-owned legal person	0.03	%	9,449,731	—	—
Details of shareholders	1.  HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS system. The relevant regulations of The Stock Exchange of Hong Kong Limited do not require such persons to declare whether their shareholdings are pledged or frozen. Hence, HKSCC Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen.
	2.  China International Television Corporation and China National Nuclear Corporation became the top 10 shareholders of the Company through the strategic placement during the initial public offering of A Shares of the Company in December 2006. The trading restriction period of the shares from the strategic placement was from 9 January 2007 to 9 January 2008.
	3.  Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund has Industrial and Commercial Bank of China Limited as their fund depositary. China Universal Asset Management Co., Ltd – Industrial and Commercial Bank of China Limited – China Universal – Tianfu Bull No.53 Asset Management Plan has Industrial and Commercial Bank of China Limited as its asset trustee. Save as above, the Company was not aware of any connected relationship and concerted parties as defined by the “Measures for the Administration of the Takeover of Listed Companies” among the top ten shareholders of the Company.

2.3 Total number of preference share holders, top ten preference share holders, and the particulars of top ten preference share holders with no selling restrictions as at the end of the reporting period

☐  Applicable            ☑  Not applicable

3. Significant Events

3.1 Particulars of and reasons for changes in major accounting items and financial indicators of the Company

☑  Applicable            ☐  Not applicable

5

(1) Changes in key financial indicators and the reasons

RMB million

Key financial indicators	As at 30 September 2018		As at 31 December 2017		Increase/ (decrease)			Main reasons
Total assets		3,116,499		2,897,591		7.6	%	Accumulation of the assets from insurance business and investment business
Total liabilities		2,781,321		2,572,281		8.1	%	An increase in insurance reserves
Total equity holders’ equity		330,385		320,933		2.9	%	Due to the effect of profits during the Reporting Period

RMB million

Key financial indicators	For the nine months ended 30 September 2018		For the nine months ended 30 September 2017		Increase/ (decrease)			Main reasons
Operating profit		25,360		32,679		-22.4	%	A significant decrease in equity income in open market due to the dramatic volatility in domestic capital market
Net profit attributable to equity holders of the Company		19,869		26,825		-25.9	%	A significant decrease in equity income in open market due to the dramatic volatility in domestic capital market

(2) Material changes in major accounting items and the reasons

RMB million

Key financial indicators	As at 30 September 2018		As at 31 December 2017		Increase/ (decrease)			Main reasons
Cash fund		67,579		50,189		34.6	%	The needs for liquidity management
Securities purchased under agreements to resell		6,126		36,184		-83.1	%	The needs for liquidity management
Premiums receivables		31,986		14,121		126.5	%	Accumulation of renewal premiums
Investment properties		7,035		3,064		129.6	%	An increase of investment properties
Securities sold under agreements to repurchase		119,626		87,309		37.0	%	The needs for liquidity management
Unearned premium reserves		20,231		12,289		64.6	%	Development of short-term insurance business and the variation of its business schedule

6

RMB million

Key financial indicators	For the nine months ended 30 September 2018			For the nine months ended 30 September 2017		Increase/ (decrease)	Main reasons
Fair value gains/(losses)		(5,412	)		4,557	N/A	Fluctuation of the market value of the financial assets at fair value through profit or loss
Impairment losses		5,596			2,189	155.6%	An increase in equity investment assets identified to be impaired

3.2 Explanation and analysis of significant events and their impacts and solutions

☐  Applicable             ☑  Not applicable

3.3 Undertakings were not implemented in due time during the reporting period

☑  Applicable             ☐  Not applicable

Prior to the listing of the Company’s A Shares (30 November 2006), land use rights were injected by China Life Insurance (Group) Company (the “CLIC”) into the Company during its reorganization. Out of these, four pieces of land (with a total area of 10,421.12 square meters) had not had its formalities in relation to the change of ownership completed. Further, out of the properties injected into the Company, there were six properties (with a gross floor area of 8,639.76 square meters) in respect of which the formalities in relation to the change of ownership had not been completed. CLIC undertook to complete the above-mentioned formalities within one year of the date of listing of the Company’s A Shares, and in the event such formalities could not be completed within such period, CLIC would bear any potential losses to the Company in relation thereto.

CLIC strictly followed these commitments. As at the end of the Reporting Period, save for the two properties and related land of the Company’s Shenzhen Branch, the ownership registration formalities of which had not been completed due to historical reasons, all other formalities in relation to the change of land and property ownership had been completed. The Shenzhen Branch of the Company continues to use such properties and land, and no other parties have questioned or hindered the use of such properties and land by the Company.

The Company’s Shenzhen Branch and the other co-owners of the properties have issued a letter to the governing department of the original owner of the properties in respect of the confirmation of ownership of the properties, requesting it to report the ownership issue to the State-owned Assets Supervision and Administration Commission of the State Council (“SASAC”), and requesting the SASAC to confirm the respective shares of each co-owner in the properties and to issue written documents in this regard to the department of land and resources of Shenzhen, so as to assist the Company and the other co-owners to complete the formalities in relation to the division of ownership of the properties.

7

Given that the change of ownership of the above two properties and related land use rights were directed by the co-owners, and all formalities in relation to the change of ownership were proceeded slowly due to reasons such as issues rooted in history and government approvals, CLIC, the controlling shareholder of the Company, made further commitment as follows: CLIC will assist the Company in completing, and urge the co-owners to complete the formalities in relation to the change of ownership in respect of the above two properties and related land use rights as soon as possible. If the formalities cannot be completed due to the reasons of the co-owners, CLIC will take any other legally practicable measures to resolve the issue and will bear any potential losses suffered by the Company as a result of the defective ownership.

3.4 Warnings and explanation for any forecasted losses or significant changes (as compared to the same period of last year) in accumulated net profit from the beginning of the year to the end of the next reporting period

☐  Applicable             ☑  Not applicable

This announcement is published in both Chinese and English. The Chinese version announcement shall prevail.

By Order of the Board

China Life Insurance Company Limited

Heng Victor Ja Wei

Company Secretary

As at the date of this announcement, the Board of Directors of the Company comprises:

Executive Directors:	Yang Mingsheng, Lin Dairen, Xu Hengping, Xu Haifeng
Non-executive Directors:	Yuan Changqing, Liu Huimin, Yin Zhaojun, Su Hengxuan
Independent Non-executive Directors:	Chang Tso Tung Stephen, Robinson Drake Pike,
	Tang Xin, Leung Oi-Sie Elsie

Hong Kong, 25 October 2018

8

4. Appendix

4.1 Balance sheet as at 30 September 2018 (unaudited)

RMB million (Unless otherwise stated)

ASSETS	As at 30 September 2018 Group		As at 31 December 2017 Group		As at 30 September 2018 Company		As at 31 December 2017 Company
Assets
Cash fund		67,579		50,189		64,210		44,176
Financial assets at fair value through profit or loss		159,345		136,808		146,082		127,543
Securities purchased under agreements to resell		6,126		36,184		6,084		35,760
Interest receivables		50,397		50,395		49,944		50,044
Premiums receivables		31,986		14,121		31,986		14,121
Receivables from reinsurers		21		64		21		64
Unearned premium reserves receivable from reinsurers		606		527		606		527
Claim reserves receivable from reinsurers		198		104		198		104
Reserves for life insurance receivables from reinsurers		285		281		285		281
Reserves for long-term health insurance receivables from reinsurers		2,629		2,070		2,629		2,070
Other receivables		10,311		22,078		9,219		20,967
Loans		432,111		383,504		428,422		381,253
Term deposits		452,569		449,400		446,763		444,279
Available-for-sale financial assets		875,307		810,734		863,127		797,108
Held-to-maturity investments		781,316		717,037		780,540		716,346
Long-term equity investments		173,619		161,472		185,095		171,537
Statutory deposits		6,333		6,333		5,653		5,653
Investment properties		7,035		3,064		1,361		1,401
Constructions in progress		20,295		16,696		16,829		10,951
Fixed assets		25,495		25,384		24,299		24,743
Intangible assets		8,033		6,406		7,344		5,694
Other assets		4,894		4,728		4,764		4,577
Separate account assets		9		12		9		12
Total Assets		3,116,499		2,897,591		3,075,470		2,859,211

Yang Mingsheng Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of
Accounting Department

9

4.1 Balance sheet as at 30 September 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

	As at 30 September 2018 Group			As at 31 December 2017 Group			As at 30 September 2018 Company			As at 31 December 2017 Company
LIABILITIES AND EQUITY
Liabilities
Short-term borrowings		1,013			780			—			—
Financial liabilities at fair value through profit or loss		2,970			2,529			—			—
Derivative financial liabilities		1,563			—			1,563			—
Securities sold under agreements to repurchase		119,626			87,309			116,894			85,316
Premiums received in advance		2,642			18,505			2,642			18,505
Brokerage and commission payable		4,798			5,659			4,798			5,659
Reinsurance payable		1,112			790			1,112			790
Salary and welfare payable		7,019			10,962			6,129			10,103
Taxes payable		3,820			6,887			3,671			6,720
Claims payable		49,291			44,820			49,291			44,820
Policyholder dividends payable		82,578			83,910			82,578			83,910
Other payable		10,841			10,254			9,893			9,722
Policyholder deposits		252,972			232,488			252,972			232,488
Unearned premium reserves		20,231			12,289			20,231			12,289
Claim reserves		15,211			13,778			15,211			13,778
Reserves for life insurance		2,058,961			1,915,324			2,058,961			1,915,324
Reserves for long-term health insurance		101,064			83,742			101,064			83,742
Long-term borrowings		19,354			18,014			—			—
Deferred tax liabilities		2,985			4,871			2,967			4,501
Other liabilities		23,261			19,358			15,708			13,047
Separate account liabilities		9			12			9			12
Total liabilities		2,781,321			2,572,281			2,745,694			2,540,726
Equity
Share capital		28,265			28,265			28,265			28,265
Other equity instruments		7,791			7,791			7,791			7,791
Capital reserve		54,730			55,142			54,073			54,485
Accumulated other comprehensive income		(2,055	)		(3,544	)		(2,216	)		(4,335	)
Surplus reserve		66,754			63,536			66,706			63,488
General reserve		30,637			30,541			30,172			30,172
Retained earnings		144,263			139,202			144,985			138,619
Attributable to equity holders of the Company		330,385			320,933
Non-controlling interests		4,793			4,377
Total equity		335,178			325,310			329,776			318,485
Total liabilities and equity		3,116,499			2,897,591			3,075,470			2,859,211

Yang Mingsheng Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of Accounting Department

10

4.2 Income statement for the third quarter of 2018 (unaudited)

RMB million (Unless otherwise stated)

	For the nine months ended 30 September						For the nine months ended 30 September
	2018 Group			2017 Group			2018 Company			2017 Company
1.  Operating income		540,967			547,665			539,798			545,095
Premiums earned		457,295			438,937			457,295			438,937
Premium income		468,534			449,992			468,534			449,992
Including: Reinsurance premium income		5			3			5			3
Less: Premiums ceded to reinsurers		(3,376	)		(2,737	)		(3,376	)		(2,737	)
Change in unearned premium reserves		(7,863	)		(8,318	)		(7,863	)		(8,318	)
Investment income		83,870			99,306			83,623			98,460
Including: Share of profit of associates and joint ventures		6,150			5,768			6,141			5,653
Fair value gains/(losses)		(5,412	)		4,557			(5,199	)		4,473
Foreign exchange gains/(losses)		(411	)		9			318			(332	)
Gains/(losses) on disposal of assets		18			2			18			1
Other gains		19			11			14			7
Other operating income		5,588			4,843			3,729			3,549
2.  Operating expenses		(515,607	)		(514,986	)		(513,916	)		(513,863	)
Surrenders		(107,826	)		(85,651	)		(107,826	)		(85,651	)
Claims expense		(143,524	)		(162,180	)		(143,524	)		(162,180	)
Less: Claims recoverable from reinsurers		1,642			1,012			1,642			1,012
Increase in insurance contracts reserve		(162,355	)		(165,836	)		(162,355	)		(165,836	)
Less: Insurance reserves recoverable from reinsurers		657			481			657			481
Policyholder dividends resulting from participation in profits		(11,706	)		(15,914	)		(11,706	)		(15,914	)
Tax and surcharges		(512	)		(501	)		(444	)		(475	)
Underwriting and policy acquisition costs		(48,452	)		(49,581	)		(48,452	)		(49,581	)
Administrative expenses		(23,528	)		(22,017	)		(22,089	)		(20,754	)
Less: Expenses recoverable from reinsurers		196			548			196			548
Other operating expenses		(14,603	)		(13,158	)		(14,434	)		(13,324	)
Impairment losses		(5,596	)		(2,189	)		(5,581	)		(2,189	)
3.  Operating profit		25,360			32,679			25,882			31,232
Add: Non-operating income		43			53			32			53
Less: Non-operating expenses		(317	)		(169	)		(317	)		(166	)
4.  Net profit before income tax		25,086			32,563			25,597			31,119
Less: Income tax expenses		(4,778	)		(5,346	)		(4,519	)		(5,097	)

Yang Mingsheng Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of Accounting Department

11

4.2 Income statement for the third quarter of 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

	For the nine months ended 30 September						For the nine months ended 30 September
	2018 Group			2017 Group			2018 Company			2017 Company
5. Net profit		20,308			27,217			21,078			26,022
According to operating continuity:
– Net profit from continuing operations		20,308			27,217			21,078			26,022
– Net profit from discontinuing operations		—			—			—			—
According to ownership of the company:
– Equity holders of the Company		19,869			26,825
– Non-controlling interests		439			392
6. Earnings per share
Basic earnings per share		RMB0.69			RMB0.94
Diluted earnings per share		RMB0.69			RMB0.94
7. Other Comprehensive income		1,510			(764	)		2,119			(1,558	)
Other comprehensive income attributable to equity holders of the Company (net of tax)		1,489			(742	)
Other comprehensive income that may be reclassified to profit or loss		1,489			(742	)		2,119			(1,558	)
Fair value gains/(losses) on available-for-sale financial assets		(8,314	)		(2,873	)		(7,496	)		(3,518	)
Less: Amount transferred to net profit from other comprehensive income		10,720			1,748			10,718			1,746
Portion of fair value changes on available-for-sale financial assets attributable to participating policyholders		(1,750	)		668			(1,750	)		668
Other comprehensive income that may be transferred to profit or loss under the equity method		632			32			520			(287	)
Exchanges differences on translating foreign operations		201			(317	)		127			(167	)
Other comprehensive income that will not be reclassified to profit or loss		—			—			—			—
Other comprehensive income attributable to non-controlling interests (net of tax)		21			(22	)
8. Total Comprehensive income		21,818			26,453			23,197			24,464
– Attributable to equity holders of the Company		21,358			26,083
– Attributable to non-controlling interests		460			370

Yang Mingsheng Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of
Accounting Department

12

4.2 Income statement for the third quarter of 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

	For the three months ended 30 September						For the three months ended 30 September
	2018 Group			2017 Group			2018 Company			2017 Company
1. Operating income		133,795			146,233			133,557			145,102
Premiums earned		108,310			102,667			108,310			102,667
Premium income		108,052			104,025			108,052			104,025
Including: Reinsurance premium income		2			2			2			2
Less: Premiums ceded to reinsurers		(943	)		(975	)		(943	)		(975	)
Change in unearned premium reserves		1,201			(383	)		1,201			(383	)
Investment income		24,480			41,035			24,082			40,406
Including: Share of profit of associates and joint ventures		2,014			2,103			1,853			1,844
Fair value gains/(losses)		(152	)		844			(106	)		1,044
Foreign exchange gains/(losses)		(513	)		51			194			(154	)
Gains/(losses) on disposal of assets		11			3			11			2
Other gains		11			2			10			2
Other operating income		1,648			1,631			1,056			1,135
2. Operating expenses		(130,049	)		(129,537	)		(129,588	)		(129,148	)
Surrenders		(7,713	)		(12,632	)		(7,713	)		(12,632	)
Claims expense		(47,932	)		(38,284	)		(47,932	)		(38,284	)
Less: Claims recoverable from reinsurers		714			423			714			423
Increase in insurance contracts reserve		(43,263	)		(46,481	)		(43,263	)		(46,481	)
Less: Insurance reserves recoverable from reinsurers		107			138			107			138
Policyholder dividends resulting from participation in profits		(2,394	)		(7,838	)		(2,394	)		(7,838	)
Tax and surcharges		(113	)		(131	)		(105	)		(125	)
Underwriting and policy acquisition costs		(12,745	)		(12,767	)		(12,745	)		(12,767	)
Administrative expenses		(7,777	)		(7,568	)		(7,277	)		(7,076	)
Less: Expenses recoverable from reinsurers		59			240			59			240
Other operating expenses		(4,665	)		(4,135	)		(4,714	)		(4,244	)
Impairment losses		(4,327	)		(502	)		(4,325	)		(502	)
3. Operating profit		3,746			16,696			3,969			15,954
Add: Non-operating income		19			12			15			13
Less: Non-operating expenses		(126	)		(74	)		(126	)		(74	)
4. Net profit before income tax		3,639			16,634			3,858			15,893
Less: Income tax expenses		(34	)		(1,909	)		59			(1,836	)

Yang Mingsheng     Chairman                                        Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of
Accounting Department

13

4.2 Income statement for the third quarter of 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

		For the three months ended 30 September						For the three months ended 30 September
		2018 Group			2017 Group			2018 Company			2017 Company
5.	Net profit		3,605			14,725			3,917			14,057
	According to operating continuity:
	– Net profit from continuing operations		3,605			14,725			3,917			14,057
	– Net profit from discontinuing operations		—			—			—			—
	According to ownership of the company:
	– Equity holders of the Company		3,446			14,583
	– Non-controlling interests		159			142
6.	Earnings per share
	Basic earnings per share		RMB0.12			RMB0.51
	Diluted earnings per share		RMB0.12			RMB0.51
7.	Other Comprehensive income		3,759			(376	)		2,909			(175	)
	Other comprehensive income attributable to equity holders of the Company (net of tax)		3,740			(367	)
	Other comprehensive income that may be reclassified to profit or loss		3,740			(367	)		2,909			(175	)
	Fair value gains/(losses) on available-for-sale financial assets		(3,058	)		750			(3,600	)		939
	Less: Amount transferred to net profit from other comprehensive income		7,401			(1,511	)		7,391			(1,510	)
	Portion of fair value changes on available-for-sale financial assets attributable to participating policyholders		(945	)		521			(945	)		521
	Other comprehensive income that may be transferred to profit or loss under the equity method		3			(15	)		4			(15	)
	Exchanges differences on translating foreign operations		339			(112	)		59			(110	)
	Other comprehensive income that will not be reclassified to profit or loss		—			—			—			—
	Other comprehensive income attributable to non-controlling interests (net of tax)		19			(9	)
8.	Total Comprehensive income		7,364			14,349			6,826			13,882
	– Attributable to equity holders of the Company		7,186			14,216
	– Attributable to non-controlling interests		178			133

Yang Mingsheng       Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of Accounting Department

14

4.3 Cash flow statement for the third quarter of 2018 (unaudited)

RMB million (Unless otherwise stated)

		For the nine months ended 30 September						For the nine months ended 30 September
		2018 Group			2017 Group			2018 Company			2017 Company
1.	Cash flows from operating activities
	Premiums received		435,288			405,749			435,288			405,749
	Net increase in policyholder deposits		20,860			35,751			20,860			35,751
	Net cash received from financial assets at fair value through profit or loss		—			80,879			—			81,654
	Net cash received from financial liabilities at fair value through profit or loss		898			1,356			—			—
	Cash received from other operating activities		7,372			5,205			3,740			3,670
	Sub-total of cash inflows from operating activities		464,418			528,940			459,888			526,824
	Cash paid for claims		(246,874	)		(243,538	)		(246,874	)		(243,538	)
	Net cash paid for reinsurance business		(1,174	)		(371	)		(1,174	)		(371	)
	Cash paid for brokerage and commission fees		(49,313	)		(47,959	)		(49,313	)		(47,959	)
	Cash paid for policyholder dividends		(15,348	)		(16,819	)		(15,348	)		(16,819	)
	Cash paid to and for employees		(16,275	)		(14,012	)		(15,381	)		(13,336	)
	Cash paid for taxes and surcharges		(12,177	)		(6,205	)		(11,499	)		(5,633	)
	Net cash paid for financial assets at fair value through profit or loss		(28,336	)		—			(24,675	)		—
	Cash paid for other operating activities		(18,488	)		(20,247	)		(16,398	)		(19,765	)
	Sub-total of cash outflows from operating activities		(387,985	)		(349,151	)		(380,662	)		(347,421	)
	Net cash flows from operating activities		76,433			179,789			79,226			179,403

Yang Mingsheng       Chairman Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of Accounting Department

15

4.3 Cash flow statement for the third quarter of 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

		For the nine months ended 30 September						For the nine months ended 30 September
		2018			2017			2018			2017
		Group			Group			Company			Company
2.	Cash flows from investing activities
	Cash received from sales and redemption of investments		418,771			676,688			418,781			658,984
	Cash received from investment income		98,111			94,099			92,741			90,845
	Net cash received from disposals of fixed assets, intangible assets and other long-term assets		66			823			66			823
	Net cash received from securities purchased under agreements to resell		30,058			11,982			29,676			11,681
	Net cash received from the disposal of subsidiaries and other business units		—			—			351			92
	Sub-total of cash inflows from investing activities		547,006			783,592			541,615			762,425
	Cash paid for investments		(588,831	)		(915,924	)		(583,792	)		(894,291	)
	Net increase in policy loans		(25,169	)		(8,753	)		(25,169	)		(8,753	)
	Cash paid for acquisition of fixed assets, intangible assets and other long-term assets		(10,650	)		(6,726	)		(9,437	)		(5,299	)
	Net cash paid for the acquisition of subsidiaries and other business units		(775	)		—
	Cash paid for other investing activities		(299	)		(399	)		—			—
	Sub-total of cash outflows from investing activities		(625,724	)		(931,802	)		(618,398	)		(908,343	)
	Net cash flows from investing activities		(78,718	)		(148,210	)		(76,783	)		(145,918	)

Yang Mingsheng Chairman                                    Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of Accounting Department

16

4.3 Cash flow statement for the third quarter of 2018 (unaudited) (continued)

RMB million (Unless otherwise stated)

		For the nine months ended 30 September						For the nine months ended 30 September
		2018 Group			2017 Group			2018 Company			2017 Company
3.	Cash flows from financing activities
	Cash received from investment		1,562			1,126			—			—
	Including:   Cash received from the investment of non-controlling interests by subsidiaries		1,562			1,126
	Cash received from borrowings		730			149			—			—
	Net cash received from securities sold under agreements to repurchase		32,317			—			31,578			—
	Sub-total of cash inflows from financing activities		34,609			1,275			31,578			—
	Cash repaid to lenders		—			(28,000	)		—			(28,000	)
	Cash paid for dividends and interests		(14,713	)		(12,162	)		(14,108	)		(10,582	)
	Net cash paid for securities sold under agreement to repurchase		—			(5,596	)		—			(6,991	)
	Cash paid for other financing activities		(312	)		—			—			—
	Sub-total of cash outflows from financing activities		(15,025	)		(45,758	)		(14,108	)		(45,573	)
	Net cash flows from financing activities		19,584			(44,483	)		17,470			(45,573	)
4.	Effect of changes in foreign exchange rate on cash and cash equivalents		(3	)		(4	)		121			14
5.	Net increase/(decrease) in cash and cash equivalents		17,296			(12,908	)		(20,034	)		(12,074	)
	Add: Opening balance of cash and cash equivalents		48,586			67,046			44,186			62,606
6.	Closing balance of cash and cash equivalents		65,882			54,138			64,220			50,532

Yang Mingsheng Chairman                                      Zhao Lijun Vice President in charge of Accounting Affairs Li Mingguang Chief Actuary Hu Jin Head of
Accounting Department

17